Homines libenter quod volunt credunt
Posted in Market Failures on Jan 25th, 2011
Last week, we started to discuss how it was impossible to identify whether a low price was a “predatory” price. We continue in this post to work our way through Demsetz’s paper. Another way to potentially identify predatory behavior is not to look at prices, but rather to look at how firms’ output levels change […]
Posted in Market Failures on Jan 17th, 2011
In a previous post, we examined whether it was even possible in principle to determine if a company was engaging in “socially harmful” predatory pricing. Today we’ll address whether there is even a theoretical possibility for making such a determination. And in another future post, we’ll return to the more fundamental question of whether price […]
